The MIB Groupcreator of the monthly index MIB Life Indexhas released its final figures on life insurance applications in Canada for 2024, which indicate a 6.5% increase in applications since the start of 2024 compared to 2023 figures.
Comparing year over year, activity in December 2024 showed an increase of 9% compared to December 2023. However, December was a relatively sluggish month: application activity fell by 18%. compared to November 2024.
Excluding submissions not specifically related to life insurance products, activity in December 2024 still recorded an increase of 7.4% compared to December 2023 and ended the year with a cumulative increase of 7.4%. 5% compared to 2023.
Significant increases in older age groups
Analysis by age group reveals moderate, single-digit growth for most groups, except for those 61 and older. Applications for those aged 61 to 70 climbed 18.4% in 2024, while those for those aged 71 and over jumped 45.4%.
“From January to November 2024, those 61 and older showed continued year-over-year growth, albeit on a decreasing scale, while other age groups fluctuated,” the report authors write. .
“Although those 71 and older outperformed all other groups, the growth percentages fell rapidly starting in March. In December, this group recorded a decline of 2.8% compared to the previous year, while all other groups showed growth in December. »
Universal life insurance in the lead
As in 2023, the 2024 results were supported by increased demand for whole life (+3.8%) and universal life (+28.1%) products, which offset the stagnant activity in temporary insurance, down 0.7%.
“Whole life insurance represented 24.9% of total life insurance activity in Canada, while term insurance accounted for 23.8% and universal insurance 17.8%,” the authors state.
“Applications for whole and universal life insurance have seen cumulative growth across all age groups, with a double-digit increase for universal insurance. Temporary insurance, for its part, showed an increase for those aged 0 to 30, a decline for those aged 51 to 60 and stable activity for other age groups,” they add.
